Reader Request: Technical Look at Apple on Multiple Timframes

The weekly chart is a thing of beauty, highlighting a series of higher lows and higher highs. In between uptrending periods are clearly defined horizontal channel consolidations. The stock price is reverting around its 50 day moving average, and above its 200 day average and an uptrend line drawn off the 2014 and 2015 lows. The only negative is volume, which has been declining for the last couple of years, as reflected by the 50 day moving average of volume. Positive money flow dropped off this year, as well, with Chaikin Money Flow moving below the 21 period average of the indicator that I use as a signal line, and continuing lower.

There is some interesting price action to note on the daily chart. Large dark candles formed at the March and April highs, which were followed by moderate pullbacks whose lows defined a three month support line. This week another large bearish engulfing candle formed, and it encompasses the prior and last week’s total ranges. A bearish eveningstar candlestick pattern finished out the action this week. An eveningstar is a three day reversal pattern, that is made up of a large white candle, followed by a narrow opening and closing “doji” candle (in this case a gravestone doji with the opening and closing range near the upper end of the overall range), and completed by a large dark candle.
It represents a transition from bullishness to bearishness, and is often seen at important tops. If there is continued weakness it is likely the 50 day moving average is tested and potentially the support line. This could be a part of another healthy reversion, however if trend support is taken out, there may be talk of a triple top. It’s a little early, however, to start making those predictions about a stock that could just as easily take out its February and April highs, effectively breaking out of the weekly consolidation range, and potentially powering on to new all time levels.